How to Rebuild Bad Credit

At our Kelly dealership near Emmaus, Allentown, and Easton, we extend visiting customers the convenience of buying their preferred Kelly Cars on credit. However, in order for them to make this purchase, they ought to have a dependable credit score.

A bad credit rating gives us a wrong impression about the buyer’s ability to pay us back on time and we’re not keen on making such a business decision. If you happen to find yourself with a poor credit score, you can use this guide to boost back your credit score to a reassuring number.

What is Bad Credit and How Can You Get Rid Of It?

Bad credit refers to negative remarks on a person’s credit report such as complaints and notifications about late payments, bills sent to collection agencies, foreclosures, filings for bankruptcy, and so on.

Lousy credit can hamper your accountability as a buyer for quite some time, but it is not permanent. With time, you can rebuild your credit score and drive the bad rank away. How do you do this? We discuss below.

•You keep your credit utilization low. This means, even if you are allowed to borrow 80% of the total credit you are owed, you try to use only 30% or less of this credit. It keeps your numbers high and also makes it easy for you to make your due payments on time.

•You do not hesitate with the payments you owe. Late payments can greatly impact your credit score. Making your payments on time will help stabilize your flailing credit score.

•You can opt for a new secured credit card. A credit card works the same way as any credit card. The difference lies in the fact that you’re required to make an upfront payment in order to receive this card. The upfront payment/deposit usually is the same as the credit limit.

•Try out a credit builder loan. Visit a credit union or community bank and ask for a credit builder loan. All you’ll need is a membership to the bank, a certificate of income and proof of your ability to repay. In this type of loan, the lender releases the money only when you’ve repaid the total value of the loan. A credit builder loan is a great way to improve that credit rating.

Price plus tax, license, document preparation charge, and finance charges and smog fees (used vehicles only), where applicable. While every effort has been made to ensure display of accurate data and pricing, this listing may not reflect all accurate vehicle data or pricing and is subject to human error. All Inventory listed is subject to prior sale. The photo shown, if any, may be an example only. Please consult dealership personnel for further details. Payment calculator is for illustration purposes only. Your interest rate may vary and is based on your credit score. Also your down payment or trade value may vary. You can adjust these values to better fit your situation.